How It Works
EOA uses the industry’s standardized banking system that keeps our trade dollars balanced. Other terms for tender used by EOA members include Trade Drafts and Scrip (which are akin to gift certificates). Members exchange their trade dollars through usage of their EOA credit cards when making purchases with other members. We act as a fully accountable third party record keeper, similar to a bank and stock brokerage firm.
EOA & Taxes
There is no tax advantage or disadvantage to EOA trade transactions.
In 1982, the United States Congress passed TEFRA, the Tax Equity Fiscal Responsibility Act. TEFRA recognizes trade exchanges, like EOA, as third party record keepers of barter transactions and stipulates that all trade revenue earned is to be treated as income.
Income generated through your EOA membership is taxable in the year in which the sale occurred, and EOA is required to file Form 1099-B, Proceeds from Broker and Barter Exchange Transactions, for all member transactions within the calendar year.
Accordingly, we will issue you a Form 1099-B summarizing the value of all of your sales made through EOA during the year. The IRS receives the same information about your firm’s EOA sales.
Fees & Costs
Essentially, EOA is a well positioned commissioned sales force for your company. We bring you new business; and when we do, we earn our commission on the business generated through transaction fees. If we don't perform, no transaction fees are due. Many members have more than one business; and they do not pay additional fees for these.
Our fees are:
- Entrance Fee: EOA trade dollar gift cards totaling $395 are issued against each new business. We sell these cards to members, which introduces your business to the EOA community.
- Monthly Fee: This $10 cash and $10 trade fee is charged each month that you are a member, unless your business is located outside of the Anchorage Bowl.
- Transaction Fee: This 7.5% fee is charged each time you make a purchase or a sale; we break this fee in two, to assure that you'll be assisted during both your sales and purchases.
We encourage you to contact us directly if you have further questions or concerns regarding EOA and our fee plans.
|
